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Jun 19, 2013
06/13
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you know, there are a number of things you can do in this environment. we find bank loans interesting for what you do with fixed income. but outside of that, just your steady, regular, run-of-the-mill, blue chip equities in domestic markets. and perhaps, at some point here as they get cheaper and cheaper, emerging markets again become very interesting given the valuations they've now sunk off to. >> that's an interesting comment, because we've seen real outflows in the emerging markets. you think that story has bottomed? >> we think this story is a long-term story. we've recognized the weakness here as the flow of money created by this kind of pullback from central banks. at some point here, that valuation -- we think the valuation's already attractive for long-term buyers. we've been inching into it. we think the rest of the market will come around to that viewpoint somewhere within the next 12 to 18 months. >> rich, with the taper talk beginning to swell, as the patient is taken off the morphine, wouldn't it make sense for stocks to go lower? and if th
you know, there are a number of things you can do in this environment. we find bank loans interesting for what you do with fixed income. but outside of that, just your steady, regular, run-of-the-mill, blue chip equities in domestic markets. and perhaps, at some point here as they get cheaper and cheaper, emerging markets again become very interesting given the valuations they've now sunk off to. >> that's an interesting comment, because we've seen real outflows in the emerging markets....
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Jun 21, 2013
06/13
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and, in fact, that's an environment where a competitor like cisco is performing quite well. the second reason is that more than half of oracle's sales come from international. and unless you've been living under a rock lately, you know that emerging markets, especially, they cited asia and latin america, actually, in the earnings release as the weak areas. i think that's a huge headwind for oracle going forward. lastly, on a valuation basis, it's priced similar to ibm with similar growth prospects, so it's not excessively cheap even after the sell-off. >> so you both agree this is a stay-away. is there anything out there that would change your mind, make either of you a buyer? >> i actually think a move to 27, 28 would make it more attractive -- that's another 10% haircut. it's still projected to grow 8% to 10% and an 11 p at that point. that's attractive. >> abigail? >> it wouldn't change my mind, maria, not just because of the technicals. if we go back to the 2011 peak, they were doing well going into the drop-down into 24. it started midto late december. if we go back to
and, in fact, that's an environment where a competitor like cisco is performing quite well. the second reason is that more than half of oracle's sales come from international. and unless you've been living under a rock lately, you know that emerging markets, especially, they cited asia and latin america, actually, in the earnings release as the weak areas. i think that's a huge headwind for oracle going forward. lastly, on a valuation basis, it's priced similar to ibm with similar growth...
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Jun 20, 2013
06/13
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basically, in a rising rate environment, banks sufrt worst. they collectively fall 3.8% over three-month period in a rising-rate climate. i think there are three reasons. one, because of the net interest margins that is where we borrow short and lend long. also, banks own a lot of bonds. we know what is going to happen as far as bond values go. when rates go higher. also i just think more in the present here, if there's a sector right now that's due to kul of cool off, it is the banking stocks. >> rerecently jamie dimon said they would make 200 million on every basis point in moves. >> that, the logical point. but up is down, down is up. and i think it is a difficult calculus that things have to use here to navigate their way through. it is probably a pretty nasty mine field ahead. >> jeff, stay here. not everyone agrees with your point of view. >> joining us to make his case and why rising rates are positive for banks. brendon hawkin of ubs, what do you think of jeff's reasoning and traditional reasoning says a steeper yield curve is better f
basically, in a rising rate environment, banks sufrt worst. they collectively fall 3.8% over three-month period in a rising-rate climate. i think there are three reasons. one, because of the net interest margins that is where we borrow short and lend long. also, banks own a lot of bonds. we know what is going to happen as far as bond values go. when rates go higher. also i just think more in the present here, if there's a sector right now that's due to kul of cool off, it is the banking stocks....
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Jun 18, 2013
06/13
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in the regulatory environment. and for investors, particularly in this group. so we think they can drive investments for the longer term. >> janet, good stuff. >> great stuff. >> thank you so much. >> pleasure. >> appreciate it. >> robert, see you as well. >> thanks, guys. >>> 40 minutes to go, and those who are long in the ultra wealth category are making money right now. the dow is up 144 points as we head toward the close. >> and then the activist investor. today, dan raising his stake in sony as he tries to convince the company to spin-off its entertainment business. up next, find out if you should follow his lead. >>> and, also, a company is letting retail investors use the same algorithm trading methods used by wall street firms. what do you think? sign up for that? become an algo? >> i don't know. >> we'll look at that coming up later on "closing bell." [ male announcer ] with free package pickup from the united states postal service a small design firm can ship like a big business. just go online to pay, print and have your packages picked up for free.
in the regulatory environment. and for investors, particularly in this group. so we think they can drive investments for the longer term. >> janet, good stuff. >> great stuff. >> thank you so much. >> pleasure. >> appreciate it. >> robert, see you as well. >> thanks, guys. >>> 40 minutes to go, and those who are long in the ultra wealth category are making money right now. the dow is up 144 points as we head toward the close. >> and then...
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Jun 17, 2013
06/13
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>> i still think we prefer the dividend payers, because in this environment, the fed isn't going to adjust its underlying interest rate policy likely for a year, possibly two years or month. as a consequence, i still think dividend payers will continue to attract sponsorship. that said, i also think a more strict stance is warranted given the fact if the fed continues to taper, it ought to be because of employment growth and corporate profitability, ultimately. >> you're nodding your head. where are you putting your money to work right now? >> i agree that cyclical sectors, they look more appealing. they've become bond proxies because you couldn't find that. in the ten-year yield, if you're buying valcom stocks, you're saying, you know what, i'm getting more value on the cyclical side. >> so what are you buying here? >> financials and industrials. financials a steeper yield curve tends to benefit financials over the next couple years, that's our view. and industrials, prices coming down. that's an input cost for industrials, especially u.s.-based industrials that might perform well over th
>> i still think we prefer the dividend payers, because in this environment, the fed isn't going to adjust its underlying interest rate policy likely for a year, possibly two years or month. as a consequence, i still think dividend payers will continue to attract sponsorship. that said, i also think a more strict stance is warranted given the fact if the fed continues to taper, it ought to be because of employment growth and corporate profitability, ultimately. >> you're nodding...
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Jun 21, 2013
06/13
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how are you dealing with this much more intensified regulatory environment? >> well, no question, maria, this is a long list. well, maybe as a first comment, bnp paribas believes in a sound international regulatory government. we believe it's going to be good for the industry medium term and it's good for the economy. having said that, you are absolutely right. it's an additional layer of complexity. as it relates to regulation, it's not so much regulation that's the challenge. this is more like when first the uncertainty, we still have a lot of uncertainty there in terms of some rules still needed to be drafted, and this is really the lack of coordination between u.s. and europe. >> right. so do you think there should be a global standard, or can we operate -- i mean, what happens to the -- to the u.s. banks or the french banks if you've got different rules, and you're all operating in the same places around the world? >> well, you know what, a global standard would probably be the right way to go. you know, i'm a very optimistic person. i do believe that, y
how are you dealing with this much more intensified regulatory environment? >> well, no question, maria, this is a long list. well, maybe as a first comment, bnp paribas believes in a sound international regulatory government. we believe it's going to be good for the industry medium term and it's good for the economy. having said that, you are absolutely right. it's an additional layer of complexity. as it relates to regulation, it's not so much regulation that's the challenge. this is...
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Jun 20, 2013
06/13
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FBC
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the reactions tend to be overblown, particularly in this environment. cheryl: yesterday, frankly, it was the end of the day the suckers we saw selling off were the ones that you tend to like, as you and i have spoken before on this show, consumer discretionary, industrial, things like that, utilities, those were our safe plays -- >> we haven't done a lot of utilities, and we haven't done a lot of stuff -- the stocks that have been used as bond proxies, utilities, for example, folks have been buying them for the big dividend, and i think they have forgotten those are stocks. when the markets go down even though safe havens, a little pressure. cheryl: they view that as a safe haven as many do -- we don't view them that way at all. they tend to be very leveraged, and we don't do leveraged companies. they need cap tap markets to grow. those aren't long-term businesses we want to own for a really long climb. cheryl: let's talk about some of the stocks you do like. if you're a stock picker and you're looking at a market like today and you finally say i'd love
the reactions tend to be overblown, particularly in this environment. cheryl: yesterday, frankly, it was the end of the day the suckers we saw selling off were the ones that you tend to like, as you and i have spoken before on this show, consumer discretionary, industrial, things like that, utilities, those were our safe plays -- >> we haven't done a lot of utilities, and we haven't done a lot of stuff -- the stocks that have been used as bond proxies, utilities, for example, folks have...
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Jun 17, 2013
06/13
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you're in a low yield environment now, and the key is going to be in the next few days how the feds talk about getting themselves out of this conundrum. because real short interest rates, which are the proxy for monetary easing tightness, are starting to go up. my question tomorrow is going to be whether that's okay in view of the fed or whether they'll want to preempt that. if they don't preempt it, it suggests that they are accepting the fact that monetary policy has begun to tighten. >> so, dan, where is the best use for that cash? let's say you're talking to some of the clients that have redeemed money from bond funds. where would you advise them putting that money? >> i think you have to have a broad, diversified portfolio of stocks. there's no way around it. if people are going to look to retire at some point in their life, they're going to outlive their retirement assets if they own only fixed income assets. and most individuals, and certainly a lot of big players we talked to, have given us insights out here. most are not exposed to the stock market as well. many are sitting on t
you're in a low yield environment now, and the key is going to be in the next few days how the feds talk about getting themselves out of this conundrum. because real short interest rates, which are the proxy for monetary easing tightness, are starting to go up. my question tomorrow is going to be whether that's okay in view of the fed or whether they'll want to preempt that. if they don't preempt it, it suggests that they are accepting the fact that monetary policy has begun to tighten....
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Jun 18, 2013
06/13
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but again, i think you're going -- you're going to have to see a different valuation environment and a different growth environment before -- before private equity firms are going to get much more aggressive. the opportunity set that was out there, and that drew a lot of private equity capital over the past three or four years, was around distress and around valuations that were depressed. and that situation has corrected itself significantly, and so, the opportunity set is very different today than it was three, four years ago. >> interesting stuff. rich hendrix, thank you so much. >> thanks for having us. >> we appreciate it. >>> new developments on the so-called marijuana mom. andrea day with the story. >> reporter: she's the suv driving mom from scarsdale, new york, who, as you remember, was busted last month. well now, andrea has been indicted for manufacturing and possessing marijuana with the intent to distribute it. now, authorities say she was running a major warehouse in queens just filled with state-of-the-art lighting, irrigation, electrical, and ventilation systems. the
but again, i think you're going -- you're going to have to see a different valuation environment and a different growth environment before -- before private equity firms are going to get much more aggressive. the opportunity set that was out there, and that drew a lot of private equity capital over the past three or four years, was around distress and around valuations that were depressed. and that situation has corrected itself significantly, and so, the opportunity set is very different today...
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Jun 19, 2013
06/13
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. >> real quick on the regulatory environment. i was having a conversation about this yesterday with somebody. given the fees and the new regulatory, you know, higher regulations out there, do small and midcap banks get the short end of the stick there? because when you look at a larger bank that has a much higher market value than a smaller and midcap bank, they're facing the same fees, right? one with more assets and a higher market cap can handle it much better, right? >> oh, there's no doubt that the current regulatory environment is tilted so far in the direction of the big banks. because they can have floors of staffs just dealing with these regulations. >> right. >> whereas, when you're talking to folks lending to small and medium-sized businesses, we're much smaller and we have to deal with those issues with less forces. same issues, fewer people to do it, and less dollars to lend to the job creators of the country. >> yeah, that's very curious to me. anyway, gentlemen, thank you very much. great conversation. we appreciat
. >> real quick on the regulatory environment. i was having a conversation about this yesterday with somebody. given the fees and the new regulatory, you know, higher regulations out there, do small and midcap banks get the short end of the stick there? because when you look at a larger bank that has a much higher market value than a smaller and midcap bank, they're facing the same fees, right? one with more assets and a higher market cap can handle it much better, right? >> oh,...
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Jun 17, 2013
06/13
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directly under the control or optioned so they've got the dirt to participate in an inflation their environment, and you need that. you don't want to chase real estate at this point in the cycle and toll's very well positioned and dc to boston, a land constrained market, we think they are also in the right part of the country as well. liz: with all these name, one thing that's a common thread running through them is they are all u.s. based in the fund, most of them. can you infer from that that the u.s. is sort of the best thing going out there? do you like anything that's elsewhere, that's overseas? >> on balance, you know, and with theersified equity fund, it's focused on u.s. stocks, but within that big universe, there's tech names, material companies, industrial names with revenue outside the country, but on balance, we think that domestic industries facing the consumer, finance, that's where you want to be because you do have this ongoing recovery in the economy, and the turn in housing is a big, big part of it. that's how we positioned the portfolio. liz: positioned well as we said, doing
directly under the control or optioned so they've got the dirt to participate in an inflation their environment, and you need that. you don't want to chase real estate at this point in the cycle and toll's very well positioned and dc to boston, a land constrained market, we think they are also in the right part of the country as well. liz: with all these name, one thing that's a common thread running through them is they are all u.s. based in the fund, most of them. can you infer from that that...
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Jun 20, 2013
06/13
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we will hear how they are feeling about this environment throughout. expect some pretty exciting after hours action, maria. >> thank you so much, john. straight back to the stunning market activity. with me is cynthia, michael penta, brian reling, and heather hughs and our own rick santerry. keith blish back with us as well. thanks for joining in. quite a day. not necessarily unexpected, however. cynthia, what do you do now? >> i think we just rip the band-aid off in terms of rate. i think we are at levels where we have hit before. that we think we could retrace from here. i think there is opportunity in the yielding names that have dividend growth. we have over 10,000 maine americans retiring each and everyday over the next 19 years. i like the names with higher dividend yield. and the opportunity to grow it. i think those are the types of names that that do well as we go from here. >> are you hearing from client that they are nervous they are throwing in the towel? what conviction do you see? >> we have seen that through the bond fund and redemption.
we will hear how they are feeling about this environment throughout. expect some pretty exciting after hours action, maria. >> thank you so much, john. straight back to the stunning market activity. with me is cynthia, michael penta, brian reling, and heather hughs and our own rick santerry. keith blish back with us as well. thanks for joining in. quite a day. not necessarily unexpected, however. cynthia, what do you do now? >> i think we just rip the band-aid off in terms of rate....